USDD, the algorithmic stablecoin associated with Justin Sun and the TRON blockchain, has removed around 12,000 bitcoins from its collateral, with no corresponding approval from the DAO.
This move contradicts the coin’s previous governance claims. Originally modeled after Terra, USDD’s ambitions were scaled back after Terra-Luna’s failure.
The 12,000 BTC previously listed on USDD’s transparency page have been withdrawn from the collateral reserve. The address, 1KVpuCfhftkzJ67ZUegaMuaYey7qni7pPj, holding these assets has been removed from transparency disclosures.
Despite claims of decentralized governance, there has been only one DAO vote in May 2023, allowing USDD to use ‘burned’ TRX. This suggests a lack of clear understanding or communication regarding governance processes and the concept of ‘burned’ assets.
USDD has also faced issues with storing significant collateral at HTX without DAO consultation. The stability mechanism for USDD is nearly depleted, with only $19 million in USDT and no funds in other stablecoin reserves.
With a total supply of approximately $744 million, USDD is larger than TrueUSD, Tether Gold, and Terra Classic.
Also Read: Justin Sun Sparks Rumours of China Lifting its Ban on Crypto
